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Abstract

The paper analyzed sesame export performance and competitiveness and its main constraints in Sudan. Vector error correction model was applied using data from 1970-2014. The results showed that low yield, area variation and unstable fluctuating exchange rate are the main factors affecting sesame export earnings in the long run, and area variation in the short run. Improvement of sesame yield and stabilized exchange rate will have positive impact on sesame export value in the long run, while expansion of area under sesame production could have negative influence on sesame export value due to Sudan large share of sesame export in the world market. In order to improve foreign exchange earnings from sesame export, Sudan should address the problem of low yield, area variation and fluctuating exchange rate especially in the long run. The paper recommends adopting economic policies that lead to improvement of sesame yield, control of area under sesame production and to stabilize exchange rate of Sudanese currency.

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